I have been watching this message thread with interest, but let me chime in now. Kissimmee is really no different than any other area. Yes there are areas that have become rundown because of foreclosures creating empty homes. Then there are also vibrant areas that have not been affected as much. As a past native New Yorker I will say this; the rate of appreciation here in Central Florida is a lot less than any other area simply because of the availability of raw land. In New York City, as well as many organized metropolitan areas, the only way to build something new is to tear something down first. Kissimmee, like many other rural/suburban areas has a lot of virgin land to build on.
Yes there have been many foreclosures in the Kissimmee area, which has brought prices down, because people were enticed to buy homes or refinance existing mortgages to tap into equity when they should not have done so in the first place. Low payment mortgages that escalated in payments over time were very popular and the mantra with many lenders was, "don't worry, you can refinance later". However later never came when the rates when up, because the property value was not there to refinance.
All in all there is no quick answer, however I will say that Kissimmee is NOT the only one area affected this way. Nor should it dissuade you from making an offer if everything else works for you.
That, is my professional answer!
